Introduction to Bond Features
Bonds are a diverse group of investments. They have many different provisions, options, or features that differentiate them from one another. Some of these properties may be privileges for the bondholders. Others are advantageous to the issuers. Some benefit both parties.
As a savvy investor, you will want to understand how the different bond characteristics affect your investments and portfolio. Even if you only invest in bonds through mutual funds, it is important to know how bond managers pick and choose bonds based not only upon their performance, but their other features as well.